Tesla reported its financial results for Q3 2023. Non-GAAP EPS was $0.66. Total Revenue Grew 9% YoY in Q3 2023 to $23.4B
7.6% operating margin in Q3
$1.8B GAAP operating income in Q3
$1.9B GAAP net income in Q3
$2.3B non-GAAP net income in Q3
Operating cash flow of $3.3B in Q3
Free cash flow of $0.8B in Q3
$3.0B increase in our cash and investments QoQ to $26.1B
4.0 GWh of Energy Storage deployed in Q3
More than doubled AI training compute
RevenueTotal revenue grew 9% YoY in Q3 to $23.4B. YoY, revenue was impacted by the following items:
+ growth in vehicle deliveries
+ growth in other parts of the business
- reduced average selling price (ASP) YoY (excluding FX impact)
- negative FX impact of $0.4B
ProfitabilityTesla's operating income decreased YoY to $1.8B in Q3, resulting in a 7.6% operating margin. YoY, operating income was primarily impacted by the following items:
- reduced ASP due to pricing and mix
- increase in operating expenses driven by Cybertruck, AI and other R&D projects
- cost of production ramp and idle cost related to factory upgrades
- negative FX impact
+ growth in vehicle deliveries (despite the margin headwind from underutilization from new factories)
+ lower cost per vehicle and IRA credit benefit
+ gross profit growth in Energy Generation and Storage as well as Services and Other
+ growth in regulatory credit sales
Quarter-end cash, cash equivalents and investments increased sequentially by $3.0B to $26.1B in Q3, driven by financing activities of $2.3B and free cash flow of $0.8B.
Tesla said, that its main objectives remained unchanged in Q3-2023: reducing cost per vehicle, free cash flow generation while maximizing delivery volumes and continued investment in AI and other growth projects. Its cost of goods sold per vehicle decreased to ~$37,500 in Q3. While production costs at Tesla's new factories remained higher than its established factories, the company implemented necessary upgrades in Q3 to enable further unit cost reductions. Tesla continues to believe that an industry leader needs to be a cost leader.
During a high-interest rate environment, the company believes focusing on investments in R&D and capital expenditures for future growth, while maintaining positive free cash flow, is the right approach. Year-to-date, Tesla's free cash flow reached $2.3B while its cash and
investments position continues to improve.
© 2023, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.